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"Wholesalers balance inventory with sales"

February 15, 2012

Balancing inventories is key to managing profitability and to avoiding fresh production cutbacks if demand continues to remain modest this year.

Data from Sageworks, a financial information company, shows that U.S. businesses are keeping their inventories in line with demand, with wholesalers, in particular, balancing their stockpiles from manufacturers and their sales to retailers.

Sageworks recently conducted a financial statement analysis of privately held wholesale merchants and found they’ve kept their inventory days steady despite sales growth. Private wholesalers, part of a $4 trillion sector that operates between manufacturing and retailing, in 2011 saw a second year in a row of double-digit sales growth as sales increased nearly 13 percent, according to Sageworks’ data. Sales had rebounded from a roughly 3 percent decline in 2009 to a nearly 11 percent increase during 2010. Across all industries, private-company sales rose about 7 percent last year.

Wholesalers’ inventory days, meanwhile, have stayed level at around 77 in 2009, 2010 and 2011, suggesting private suppliers are doing a good job of managing their stocks. Inventory days are calculated as inventories divided by cost of goods sold (COGS), multiplied by 365.

“The steadiness of wholesalers’ inventory days suggests that private wholesalers are doing a good job of managing inventories compared to their sales—they have a good sense of the demand they face now and will face in the near future,” said Sageworks analyst Libby Bierman. “This is especially true since inventory days remained stable even after the recession hit wholesalers.”

 Financial analysis of wholesale merchants: inventory days vs sales change

Data from the federal government on Tuesday also provided evidence of balanced business inventories. The U.S. Census Bureau reported manufacturers’ and trade inventories grew at a slower rate than their sales and shipments in December. Business inventories increased a seasonally adjusted 0.4 percent in December and were up 7.7 percent from a year earlier, compared with sales increases of 0.7 percent from November to December and 8.9 percent from a year earlier.

The total inventory-to-sales ratio ended the year at 1.26 on a seasonally adjusted basis, compared with 1.28 at the end of 2010, the government said. Manufacturers ended 2011 with a 1.33 inventory-to-sales ratio, down from 1.34 in November. Retailers and merchant wholesalers’ inventory relative to sales was unchanged from November, when it was 1.32 and 1.15, respectively.

Sageworks, a financial information company, collects and analyzes data on the performance of privately held companies and provides financial forecasting software.

 

 

For more information, visit: http://www.forbes.com/sites/sageworks/2012/02/15/wholesalers-balance-inventory-with-sales/


Crocs Creating Stepping Stones For Their Comeback

February 15, 2012

Crocs Inc announced its expansion into licensing, providing opportunities for the Crocs brand to extend beyond footwear. The company has signed licensing agreements with key global and regional manufacturers for products ranging from apparel to sunglasses and other accessories.

 

“Licensing presents an opportunity to leverage one of our most valuable assets – the global power of the Crocs brand - by associating it with best-in-class products that go beyond footwear,” said Mike DeBell, Vice President of Global Sales. “More than 200 million pairs of Crocs shoes have been sold, in more than 90 countries around the world. That’s powerful testimony to the connection forged with consumers by the Crocs brand. Through strong international and regional licensing partners, we plan to extend the power of our brand and make new consumer connections.”

 

The first non-footwear Crocs-branded products included a line of adult and children’s socks from Sock and Accessories Brands, which launched in the holiday 2011 season. These are available in North America through wholesale and retail channels. Crocs-branded socks, produced by Intersocks, will also be available throughout European markets.

 

Crocs also entered an agreement with Accessory Exchange, which is producing a variety of Crocs-branded accessories for men, women and children, in several global regions. Accessory Exchange Crocs-branded products include hats, bags, backpacks, socks and gloves that are available now at Crocs retail stores and Crocs.com.

 

In April 2012, the Crocs brand will extend to children’s apparel through an agreement with the A Group. The children’s apparel will be available in 46 countries around the globe and distributed through retail and wholesale channels. Crocs-branded sunglasses and sunglass accessories also will launch in May 2012. Eye King, LLC is producing sunglasses for adults and youth for retail and wholesale distribution in the U.S. and Canada.

 

Through a partnership with ICER Brands, Crocs Professional Footwear Division will build on the loyal following of medical professionals with the introduction of Crocs-branded scrubs. This new medical gear is available now through specialty stores and online.

 

Finally, Paramount, a sports licensee, recently kicked off Collegiate and MLB licensed footwear for the brand, which is available now.

 

“As we continue to explore these and other new collaborations, I am confident our license partners will help us grow and spread our brand promise of delivering products with profound comfort, fun and innovation,” continued DeBell.

 

A world leader in innovative casual footwear for men, women and children, Crocs Inc, offers several distinct shoe collections with more than 250 styles to suit every lifestyle.

 

For more information, visit: http://www.fibre2fashion.com/news/company-news/crocs-inc/newsdetails.aspx?news_id=108076


Apparel deals Launches Website Appareldeals.com for Wholesale Customers

January 20, 2012

Apparel Deals announced this week the launch of its new wholesale clothing website – ApparelDeals.com.

 

Apparel Deals has been providing quality goods and competitive pricing to hundreds of thousands of customers for nine years and decided it was time to create an online presence.

 

"Our executive team has more than 20 years of experience in the industry," says Jonathan Kremerman of ApparelDeals.com. "We know our market."

 

On a daily basis, Apparel Deals provides new arrivals on wholesale clothing for the most up-to-date merchandise available. It offers same-day shipments and returns are allowed within seven days – no questions asked.

 

Wholesale clothing prices range from 30 to 80 percent below other wholesale competitors.

 

"Our goal is to provide high-quality products coupled with superior customer service," says Kremerman. "We want our clients to have a positive online shopping experience and strive for 100 percent customer satisfaction."

 

Dedicated technical support and customer service is available 24 hours via e-mail and there is also a toll-free customer support number.

 

The site offers a wide selection of fashion products and includes not only clothing, but wholesale fashion accessories, cosmetic and perfumes too.  

 

"When you combine more than competitive prices with a multitude of choices, it's a win-win situation," adds Kremerman.

 

One wholesale customer said: "I started purchasing from Apparel Deals and my customers love the clothes. I love it too as I am able to keep my customers happy and my profits are good."

 

For more information: http://www.prnewswire.com/news-releases/apparel-deals-launches-wholesale-clothing-website-137710058.html


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